In a newly released autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on the chaotic period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, Tsipras selected that maverick academic Yanis Varoufakis to be the finance minister mainly due to the latter's international reputation and Varoufakis's very persuasive skills as a public orator.
“He was, actually, more like a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis had a personal motives which involved advancing Varoufakis's books as well as experimenting with his own theories using Greece rather than genuinely advocating its economic stability.
He noted how those negotiations to prevent insolvency became “not only a way of achieving a better deal for the country. They were a test, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During rollercoaster negotiations, the country found itself dangerously on the brink of leaving the eurozone.
At stake was both the country's destiny and those punishing cutbacks demanded in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
In July 2015, those harsh bailout terms were subjected to a public vote, a move that threw Europe into deeper crisis of identity.
Even though the vote was won decisively by those who opposed austerity, Tsipras had little option but to reject its outcome then negotiate a bailout package with foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister quite early on.
“He was the public image of the talks, the man who drew media attention, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan involving creating a parallel currency and distributing coupons to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author asserts that Varoufakis demonstrated himself “unfit for an agreement that required complex and delicate handling.”
He also wrote how Varoufakis's aggressive style made him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating Grexit.
This retelling of events has provoked fury and shock in some quarters, while the former minister has maintained a deafening silence regarding these claims.
